Nihon Shokuhin Kako Co., Ltd. (2892) AI Stock Analysis

• Market Cap: ¥16.08B
• Dividend Yield: 3.36%
• Average Volume (3M): 25.55K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.62
• Revenue Growth: -5.97%
• EPS Growth: -37.27%
• Country: JP
• Employees: 423
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Packaged Foods
• EPS (TTM): 310.47
• Shares Outstanding: 6,400,000
• 10 Day Avg. Volume: 38,240
• 30 Day Avg. Volume: 25,550
• PEG Ratio: 0.06
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥3,774.00 ▲(15.41%Upside)

The stock's overall score is bolstered by strong technical momentum and attractive valuation. However, financial performance is tempered by margin variability and recent cash flow challenges, which need strategic management to sustain growth.

Nihon Shokuhin Kako Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Shokuhin Kako Co., Ltd. (2892) is a Japan-based company primarily engaged in the manufacture and sale of food products. The company operates in various sectors including the production of starches, sweeteners, and related processed food ingredients. Nihon Shokuhin Kako is known for its high-quality products used in food manufacturing, catering to both domestic and international markets. With a strong focus on innovation and quality, the company plays a significant role in the food ingredients industry.

How the Company Makes Money

Nihon Shokuhin Kako Co., Ltd. generates revenue by manufacturing and selling a range of starches and sweeteners that are essential ingredients in the food production industry. The company's key revenue streams include the sale of these products to food manufacturers who utilize them in the production of various food items, including confectionery, beverages, and processed foods. Additionally, Nihon Shokuhin Kako may engage in partnerships or collaborations with other food companies to enhance its product offerings and market reach. The company's earnings are influenced by factors such as raw material costs, production efficiency, and the demand for food ingredients both domestically and internationally.

Nihon Shokuhin Kako Co., Ltd. Financial Statement Overview

Summary

The company shows solid revenue growth but faces challenges with fluctuating margins and recent negative free cash flow. The balance sheet is stable, but leverage and cash flow issues require strategic focus.

Income Statement

The company has demonstrated solid revenue growth over the past few years, with a notable increase from 2021 to 2024. However, in 2025, a decline in revenue was observed. The gross profit margin and net profit margin have shown some fluctuations, indicating variability in cost control. The EBIT and EBITDA margins have also seen varying trends, suggesting some instability in operational efficiency. Overall, while the company shows potential with revenue growth, margins indicate room for improvement in managing costs and operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with a healthy equity ratio. However, the debt-to-equity ratio indicates a moderate level of leverage, which could pose a risk if not managed well. Return on equity has been relatively stable, suggesting consistent returns to shareholders. The balance sheet shows a solid foundation but highlights the need for careful management of leverage.

Cash Flow

Cash flow analysis reveals some concerns, particularly with the recent negative free cash flow in 2025, following a positive trend in prior years. The operating cash flow to net income ratio suggests adequate cash generation relative to net income, but the recent downturn in free cash flow highlights potential challenges in capital expenditure and operational cash management. The company needs to address these challenges to improve cash flow stability.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
16.60B	62.70B	66.68B	64.61B	50.61B	45.06B
	Gross Profit
2.78B	10.03B	10.54B	11.35B	8.64B	8.68B
	EBIT
641.00M	1.20B	2.56B	3.54B	1.50B	1.52B
	EBITDA
1.30B	4.80B	5.69B	6.02B	4.08B	3.88B
	Net Income Common Stockholders
570.00M	1.53B	2.43B	2.60B	1.37B	1.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
252.00M	241.00M	214.00M	411.00M	198.00M	177.00M
	Total Assets
50.21B	50.12B	46.43B	46.50B	39.69B	36.22B
	Total Debt
11.93B	10.73B	7.90B	10.99B	7.49B	4.90B
	Net Debt
11.67B	10.49B	7.69B	10.58B	7.29B	4.72B
	Total Liabilities
22.09B	21.69B	22.10B	23.81B	18.64B	16.30B
	Stockholders Equity
28.12B	28.42B	24.33B	22.70B	21.05B	19.93B
Cash Flow		Free Cash Flow
0.00	-1.83B	3.72B	-3.13B	-2.38B	2.27B
	Operating Cash Flow
0.00	3.69B	6.77B	-533.00M	292.00M	3.85B
	Investing Cash Flow
0.00	-5.76B	-2.46B	-2.24B	-2.41B	-2.12B
	Financing Cash Flow
0.00	2.10B	-4.51B	2.98B	2.14B	-1.78B

Nihon Shokuhin Kako Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3270.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2892, the sentiment is Positive. The current price of 3270 is above the 20-day moving average (MA) of 3238.65, above the 50-day MA of 2862.34, and above the 200-day MA of 2702.06, indicating a bullish trend. The MACD of 133.35 indicates Positive momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 9.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2892.

Nihon Shokuhin Kako Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2892	75 Outperform	¥16.08B	10.53		3.36%	-5.97%	-37.27%
2814	71 Outperform	¥14.05B	15.16		1.70%	4.25%	-18.59%
Sector *	65 Neutral	$8.92B	15.03	4.68%	6.11%	3.59%	-2.49%
2904	64 Neutral	¥14.43B	17.26		1.53%	0.59%	-15.61%
2806	61 Neutral	¥14.30B	25.86		1.94%	4.72%	20.48%
2937	58 Neutral	¥13.43B	38.23		2.41%	1.59%	-57.66%
2901	56 Neutral	¥13.91B	26.10		0.30%	-2.04%	―